Aurora Cannabis closes bought deal financing, yielding CA$38.8 million

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Canadian producer Aurora Cannabis received gross proceeds of 38.8 million Canadian dollars ($28.3 million) from a bought deal offering after the underwriters’ over-allotment option was fully exercised.

Aurora said in a news release it intends to use most of the net proceeds to repay the remaining balance of the company’s convertible notes at or before maturity, which amounts to roughly CA$34 million.

By repaying the remaining convertible debt balance, Aurora said it will save almost CA$2 million in annual interest payments.

Edmonton, Alberta-based Aurora sold roughly 53 million common shares at a price of CA$0.73 per security.

Aurora said the gross proceeds include the exercise of the over-allotment option by Canaccord Genuity, an investment bank and research firm, to purchase 6,937,500 additional common shares.

Aurora said it has approximately CA$227 million of total cash available.

Shares of Aurora trade as ACB on the Nasdaq and Toronto Stock Exchange.